The Impact of Customer Relationship Management (CRM) in the Banking Sector Using Machine Learning

Abstract

echnology today is evolving at break-neck speeds offering multiple business opportunities. The creation of Machine Learning (ML) has altered a new dimension in today’s business landscape. Machine Learning tools are rapidly changing their activity and give a new pave to the marketing people that are used to make their business more trouble-free and it also makes changes which are so profound for the marketing personnel who are finding it difficult to ignore the importance of investing in and adopting AI which is an integral part of the marketing task. Nowadays the Banking and Financial Sectors are much more mature, and robust and have implemented ML in their Customer Relationship Management (CRM) and marketing fields in a variety of ways. Generally, the most significant impacts on the growth of the above sector depend on in terms of customer loyalty, profitability, and Return on Investment. In recent years it has been noticed the rise of specialized software by the IT firms that have to be dedicated to developing customized solutions with different programs for CRM. It is the liberalization, Privatisation, and globalization(LPG) which make the banking sector so tough and becoming increasingly diverse. For that Customer, the acquisition is vital for a new bank, but retention is much more important and cost-effective for a recognized bank. CRM gives a new dimension to most Indian bankers who could realize the goal of their business and acquire and retain valuable customers to link them in the entire business process. There should be a Highly Integrated effort to innovate, discover, create, and satisfy customer needs differently. However, it is astonishing to mention that most of the banking and financial sector's activities are focused on customer acquisition rather than customer retention. In this study, we have focused on the impact of customer retention and service quality using our proposed Machine Learning Model.